Reza G. Hamzaee1,2
(1. Missouri Western State University, St. Joseph, MO 64507, USA; 2. Walden University, Minneapolis, MN 55401, USA)

 

Abstract: A critical financial challenge and hence, an assessment of financial management of academic institutions in the U.S. are the main research problem motivating this task. There seems to be easier funding and expansion in good economic conditions and unwilling or often wrong contractions in challenging economic conditions. The quality and accessibility of higher education have been a central issue for the academic industry. An analysis of various innovative ways in which academic institutions may plan for some cost-saving and revenue-raising strategies simultaneously through a form of “funds-for-results” approach is adopted in this research. Although a metric system of measurement of productivity of faculty members’ efforts has been always both controversial and challenging, some sort of competition for acquiring scarce resources could push the industry toward more productivity and responsiveness. The nature of this study is more of an exploratory one than hypothesis testing, while the literature and published data would provide some lights and practical exploration. The research questions here address effective cost-saving and/or revenue raising methods, productivity indexation and measurement, and an effective university-community sustainable partnership. State governments’ more efficient allocation of limited budgets toward some better educational infrastructure and human capital investments is also highlighted.

 

Key words: financial challenges; innovation; cost-benefit; university budgets; present value

JEL codes: G